Category: Uncategorized

Taxes 2019

Posted on . by Patrick Johnstone. Leave a comment.

If you own a home in New West, you should have received your annual tax bill in the mail in recent weeks. If your assessment went up by the city-wide average of 9.03%, then your tax bill went up over last year by 5.28%. If your assessment went up by more than 9.03%, then your tax bill went up more. Conversely, if your assessment went up by less than 3.7%, or if it went down, then your tax bill this year is lower than it was last year. I tried to show how this works in this blog post from a couple of years ago (with the numbers from a couple of years ago, mind you).

It seems an appropriate time for me to update some of my older posts comparing New West tax rates to others around the region. I’ve done this a few times in a few different ways for several years on this blog (here, here, and here, for example), and no matter what type of analysis you do, it is clear that some local pundits continue to perpetuate terminological inexactitudes when they claim that New Westminster has the highest taxes in BC, or Canada.

Recognizing my own suspicion of bias, all of the data below comes from the BC Government reports that annually compare tax rates and burdens across all local governments, and have been doing so for a while. Of course, this data is from 2018 (Cities are only now submitting 2019 budget numbers to them), but this is the best source to compare numbers across the province. You can read them all here and make your own comparisons if you don’t like my ham-fisted Excel skills.

I am going to reiterate a point I have made before: there are many ways to compare taxes between jurisdictions. Vancouver and Surrey collect more tax overall than New West, because they are much larger. West Vancouver has lower mil rates because their average house price is much higher, Creston has a much higher mil rate because its average house value is much lower. Even the use of “typical house value” to compare taxes is biased, because some cities like New West have more people living in rental and condo buildings than some others, so a “typical house” is much larger and more expensive than the median or average household occupies. So to answer the primary question: do New Westminsterites pay more municipal taxes than residents of other municipalities, I think the fairest comparison is taxes collected per capita:

Source: BC Government statistics, Schedule 703_2018

Of the 161 Municipalities in BC, ranked from highest taxes to lowest, New Westminster (orange bar above) is ranked #71, between Parksville (#70) and Saanich (#72). In 2018 we collected $77.7 Million in taxes from just under 74,000 people, making our per capita tax rate $1,051. Province-wide, $4.76 Billion in municipal taxes was collected from 4.3 Million people, making the province-wide average about $1,150 (red dashed line above). So New Westminster residents paid $100 less per year, almost 10% less, than the average resident of BC. Our tax increase in 2019 will eat into this gap, pushing us up by about $50, but at the same time, almost every other Municipality in the province increased their taxes at a rate between 2 and 7%, so our position will not shift substantially.

Naturally, there are massive differences across the province on the proportion of taxes paid by industry and businesses, and the level of services provided by the Municipality. The Lower Mainland is a bit different than the rest of the province in the level of services we supply and the cost of delivering those services, so it may be fairer to only compare New West to our Metro Vancouver cohort:

Source: BC Government statistics, Schedule 703_2018

New Westminster ranks 13th out of 21 GVRD municipalities in taxes collected per capita. The GVRD Municipalities collect about $2.6 Billion in Municipal taxes from 2.56 Million people, for an average of $1019 per person (the red dashed line). New Westminster collects slightly more (3% more) than this average. This has changed over the last couple of years for two main reasons: New Westminster’s Capital Levy we are using to fund our aggressive capital renewal plan (lead by the replacement of the Canada Games Pool) and the regional trend where there is a much higher rate of population growth in the relatively low-tax municipalities of Surrey and Maple Ridge compared to slower growth in Vancouver and (especially) the North Shore. We can talk about correlation/causation here, because it might not be what you think…

Lower Mainland LGA 2019

Posted on . by Patrick Johnstone. Leave a comment.

Last week I attended the Lower Mainland LGA’s annual conference. You paid for me to go there*, so as per my tradition, I like to report out on some of the highlights of what I saw and what I did.

The Lower Mainland Local Government Association is an organization that brings local government elected people together from across the “Lower Mainland”. Our Membership includes every Municipality and Regional District between Hope and West Vancouver, between White Rock and Pemberton. Every year we hold a two day conference over three days, and this year it was in Harrison.

The opening session included a notable speech by the Speaker of the House. Unexpectedly, this led to some media attention. In hindsight, it was bold for the Speaker to provide a speech to a room of elected officials and frame the speech around how elected officials are hated and not trusted, mostly because they are not good leaders. As a call to arms to be better leaders, or to take the role of leadership seriously (as most of the members assembled were new) it was a puzzling approach.

In this context, where your audience’s back is up, it is easy for some questionable examples and ham-fisted allegory to be received in the worst possible light. It was unfortunate, and ultimately failed to deliver the message that the speaker was hoping to deliver. The resultant media buzz was perhaps out of scale with the event, but the knives coming out so quick might have said more about why fewer people choose to put their names forward for leadership… but I digress.

Day two began with a moderated session about the Past and Future of the regional plan, or even of Regional planning. Gordon Price began with a description of the emergency that led our region to begin regional planning (the flood of 1948), and drew a parallel and contrast to our current slow-burning apocalypse, challenging us to ask whether we are planning to deal with it. “never waste a good apocalypse”. Patricia Heintzman and Patricia Ross brought perspectives from the Sea-to-Sky and the Fraser Valley – both addressing themes of responsible planning and the future of the environment and outlines some successes and challenges at the metaphorical edges of the metropolis, while Rhiannon Bennett reminded us that the growth of the region, planned or otherwise, did not occur in a vacuum, but on lands that provided prosperity to her people for several thousand years.

This was followed by a Munk-style moderated debate featuring four elected officials on the topic of Climate Action. Nadine Nakagawa and Christine Boyle debated in favour of the motion “We need a Canadian version of the Green New Deal” against Laura Dupont and… uh, me. At the end of the hour, we essentially tied (we didn’t move anyone in the crowd one way or the other) but we did manage to have a robust discussion around the strengths of different approaches to addressing climate change, and the role local governments can play.

Day two is the day we do the AGM, and Elections for the Lower Mainland LGA, followed by our Resolutions Session, where members debate various resolutions calling in senior governments to make changes in legislation or policy to make local governments work better. There were 34 resolutions, most of them approved, some with amendments, and you will have to wait until the full report comes out on line to see what went through and how.

New Westminster sent 4 resolutions forward:

Fresh Voices #LostVotes Campaign: Therefore be it resolved that UBCM request the Province of British Columbia make the necessary changes to allow Permanent Residents to vote in municipal elections in municipalities in British Columbia.

This and a similar resolution by Port Moody were supported.

#AllOnBoard Campaign: Therefore be it resolved that the #AllonBoard Campaign be endorsed and the TransLink Mayors’ Council, the Ministry of Municipal Affairs and Housing, and the Ministry of Social Development and Poverty Reduction be asked to work with the provincial government and local governments to develop a plan that will provide free public transit for minors (ages 0‐18), free transit for people living below the poverty line (as identified by market basket measure, in line with the BC poverty measures), and reduced price transit based on a sliding scale for all low‐income people regardless of their demographic profile.

This and similar resolutions by Vancouver and Port Moody were supported.

Office of a Renters Advocate: Therefore be it resolved that the LMLGA and UBCM seek support of the Provincial Government to create an Office of The Renters Advocate, to monitor and analyzes renters’ services and issues in BC, and make recommendations to government and service providers to address systemic issues caused by rental shortages, renovictions, demovictions and housing affordability.

This resolution was supported by the membership.

Support of the Indigenous Court System: Therefore be it resolved that UBCM, FCM and LMLGA lobby the Canadian Federal and Provincial Governments to fund and expand the Indigenous Court System.

This resolution was also supported by the membership. So New West was 4 for 4 on the resolution front this year!

Friday began with addresses from representatives of the three Parties in the provincial legislature. Leader Andrew Wilkinson spoke for the BC Liberal Party, Deputy Leader Jonina Campbell for the BC Greens, and Selina Robinson the (apropos) Minister of Municipal Affairs for the BC NDP.

The highlights for me on Friday were the two sessions moderated by Justin McElroy of the CBC and stuff-ranking fame.  The first had Minister Robinson, Metro Vancouver Chair Sav Dhaliwal and UBCM President Arjun Singh talking about the work of local governments (remember, most of the elected folks in the room have only been in office for 6 months), and how to work together with senior governments to get things done. The second was a panel discussion on the future of regional transportation with the Chair of the TransLink Mayors Council, the Chair of the Fraser Valley Regional District, the MLA for the Sea-To-Sky region, and ELMTOT-friendly MLA Bowinn Ma.

Overall, the Lower Mainland LGA is an opportunity for local elected people to get together and talk about the challenges we see on our communities, and the innovative ideas we are using to overcome these challenges. I got to spend time chatting with the new Mayor of Squamish about her concise new Strategic Plan (one page, straight forward, and full of easy-to-measure goals!), to ca Councillor in Abbotsford about the challenges rolling out the Abbotsforward plan, to Vancouver Councilors about their (crazy?) new Council dynamic. I got to complain and brag about New West in equal measure. It is this networking with peers and connections we make that I value most from this meeting every year.

  • *I’m on the Executive of the Lower Mainland LGA, so part of my cost of attending was covered by the organization. Also, my attendance required me to take three unpaid days off of my regular work, so MsNWimby argues that she paid a substantial part of my costs as well…

Intersections

Posted on . by Patrick Johnstone. 2 Comments.

I’m disappointed we didn’t get some of these stepped-up intersection speed cameras in New West. Speed cameras in intersections that can automatically ticket speeders are a good idea, one that can only be opposed by those who like to speed through intersections at illegal speeds, selfishly endangering everyone around them.

Why not New Wet? Apparently the intersections where these cameras were activated were those ranked highest in accident history and  speed issues. Perhaps the silver lining here is that this suggests our intersections are relatively safe by those measures compared to other areas in the Lower Mainland. Though I recognize just by saying that I am going to see comments on social media with people listing their least-favourite intersection. Mine is shown in the picture above.

But hopefully this is the just the first phase of the program, and we may see more cameras in the future. I would also hope that the next phases look not only at raw speed or 85th percentile or accident history, but we may expand the warrant analysis to emphasize intersections where vulnerable road users are more common. Yes, Accidents between speeding cars can be expensive, and often leads to injury or death. but a speeding car hitting a pedestrian is almost always fatal. While injuries and deaths of people inside cars is going down, injuries and deaths of pedestrians is going up. Technology like this can correct that trend.

On the good news side, New West has begun to make changes that were suggested by the Walkers Caucus last year, and are implementing a program of standardizing (and lengthening) the timing of pedestrian crossing light signals. Starting with the pedestrian-activated signals such as the one on Sixth Ave at 14th Street, which have already been adjusted to allow sufficient time for more people to cross safely. The ACTBiPed is also spending some time this year looking at the use of “Beg Buttons” in the City. Despite some lengthy critiques of these in Urbanist circles, there are places where pedestrian-controlled signals serve to make the pedestrian experience safer and more convenient, and there are places where they definitely prioritize car movement over pedestrian movement, in direct contrast to the priorities set out in our Master Transportation Plan. Teasing out these differences, and howto fix it, is an interesting topic, and one we hope to review and create some policy recommendations to Council.

But as you can see above, making our intersections safer and more comfortable for pedestrians is going to take more than signal timing and activation timing. This is why I support intersection camera, and further suggest we need to step up enforcement in the good old fashioned cop-with-a-ticketbook format if we are going to change drivers behaviour.

Jane’s Walk 2019

Posted on . by Patrick Johnstone. Leave a comment.

I’m leading a Jane’s Walk on Friday afternoon.

Apologies it needs to be on a Friday evening and not in the weekend true, but I have to be out of town Saturday/Sunday, and promised a certain Mary I would put a walk on, so here we go.

For those not in the know, Jane’s Walks are a series of walks held on the first weekend in May in places around the world in celebration of Jane Jacobs’ contributions to making Cities more livable. There are probably a dozen walks in New West this weekend, and I highly recommend you pick a few and meet some neighbours.

My walk is going to start at 5:30pm on Friday at Moody Park pool, and we will wander east along the path through Moody Park and then 7th Ave towards Glenbrook Middle School. I’m not sure how far we will get, but depending on the conversation, we will walk for 60 or 90 minutes before our perambulations lead some of us, inevitably, to a pub.

The topic of the conversation I want to have with whoever shows up will be framed by the contentious (?) temporary bike lane installations on 7th Ave between Moody Park and 6th Street. There is a lot to say about that particular stretch (I’ve said some of it here and here), but the bigger question is – What does a true AAA (“All Ages and Abilities”) bike route look like in New West? What compromises are we willing to make in regards to loss of green space, loss of traffic space, loss of parking, to see a AAA route built? Can a AAA bike route ever be one where bikes share space with cars, or is total separation needed? How do those needs shift between – a trail through a park, a route along a busy street, and a quiet residential street?

I need to emphasize, I don’t have a lot of answers here, other than what is informed by my “gut feeling” (which is no better than anyone else’s) about what is safe for cyclists. I would love if people discuss and think about these questions along the way, and try to discover for themselves what the friction points are that prevent rapid shift towards a full integrated and safe bike network. If you read my blog regularly (Hi Mom!), you may be interested in coming along. After all, what better way to spend a sunny evening walking through your neighbourhood, meeting some neighbours, and talking about ways to make your community safer and more livable?

C’mon out, bend a Councillor’s ear. Meet a neighbour. Take a walk. Love your City.

Price Talk

Posted on . by Patrick Johnstone. Leave a comment.

I was fortunate to be able to attend the taping of a Price Talks podcast. It was a real transportation policy geek fest (and, alas, a real sausage fest). Jarrett Walker is a transit planning consultant, an author, and an academic with an incredibly cosmopolitan view of urban transportation systems. He has worked on 4 continents, and can see the universal truths expressed in the great variety of built forms in cities around the world. The conversation was wide reaching, from Coriolanus to Elon Musk, from the inescapable geometric truths of urban transportation to aesthetic as a guiding principle in urban planning. There were dozens of quotable nuggets in the talk, some I will be chewing on for a long time as I think about how to apply them to my neighbourhood and community

My favourite nugget, however, was the 4-minute summary of ride hailing and its impact on communities. You can skip to 1:09 to hear this as part of the Q&A at the end of the evening, but to fully appreciate his answer, you need to hear his earlier discourses on the phenomenon of Elite Projection, and how it is the scourge of most North American transit planning.

Walker is much more profound on this topic than I can ever be, but the short definition of Elite Projection is the tendency for the most wealthiest and most influential minority in a population to think what is good or attractive to them is best for everyone. It exists throughout hierarchical decision-making, and once you open your eyes to it, it is everywhere. In urban transportation, it is manifest in Musk’s The Boring Company and in “cute streetcar stuck in traffic” approaches to urban transit world-wide. There may be a few local examples: here, here, or even here.

The heart of his argument about ride hailing is best summed up in this quote (based on his observed experience in American cities where it has rolled out):

“…it has been a great way to draw out the worst aspects of elite projection, because people who can afford it have become addicted to it, [and] expect as a matter of course that it will be available… [but] like anything to do with cars, it only works as long as not many people use it.”

Part of the problem is that providing mass transportation in an urban area is not a profitable business. It never has been, and never will be. Uber and Lyft are losing billions of dollars a year, their underpants-gnome business plans being propped up by venture capital silliness, while they can’t even pay living wages or provide basic workplace protections to the people doing the labour (we aren’t allowed to call them “employees”). At the same time, they cut into public transit revenues while increasing traffic congestion making those transit systems less reliable, pushing customers over to the ride-hailing industry, exacerbating the impacts. He doesn’t even touch on how ride hailing demonstrably correlates with less safe roads for people in cars, pedestrians and cyclists, but he doesn’t need to.

The warning for Vancouver is that the introduction of ride hailing could be “really terrible” for our traffic systems and our livability, for obvious reasons. The promise of ride hailing is that it reduces parking demand by increasing traffic congestion – this is not conjecture, but the demonstrated experience around North America. That is no win at all.

For you Uber fans out there, Walker does provide a clear policy recommendation about how we can make ride hailing work in our jurisdiction without externalizing these real impacts, but I guarantee Francesco Aquilini and Andrew Wilkinson ain’t going to like it…

Give it a listen, it is a great conversation:

A Night with Jarrett Walker: Building Human Transit with Shakespeare, String & Elephants in Wine Glasses

Miner improvements?

Posted on . by Patrick Johnstone. 2 Comments.

I went on a bit of a rant last week in Council on pedestrian crossings, and it is worth following up a bit here to expand sometimes on the things I rant about. In this case the subject was something we can all agree on – making pedestrian spaces safer in the City – but the details of the discussion outline how difficult it can sometimes be, even when everyone is on the same page. The hill on Richmond Street provides a great case in point about how we want to do things differently, but are stuck with a bad legacy to clean up. And that costs.

The Fraserview neighbourhood is somewhat unique in New Westminster. Most of our community is based on a well established and dense street grid that reflects how humans move around their communities – a layout that is “human scaled”. The Fraserview neighbourhood was developed out of the abandoned BC Pen site in the 1980s, which was the Canadian peak of auto-oriented suburb design. This is not the fault of the council or staff of the time, or of the people who live there now, but a result of where we were and how we valued space as a society in the 1980s.

The buildings on this map are coloured by the decade they were built. See Sapperton and Queens Park with a blend of ages and traditional dense street grids, Fraser View with 1980s houses (red) and 1990s condos (blue) with the suburban road scheme so sexy at the time.

At the time, New Westminster built this strange little auto-oriented suburb in the gap between two dense urban community centres. Since the primary built form was “house with a garage facing the street and a private yard in the back” (note this is a generally unusual built form in New West!), the streets were designed with the same exact mindset – they will be used to move cars between garages, and not much else.

This resulted in some road design ideas that were the opposite of current thinking. Instead of straight lines and a dense grid to connect pedestrians, we build a meandering “arterial” road connecting capillaries of culs-de-sac. Of course these are ostensibly “family neighbourhoods”, so we kept the speed down to 50km/h by putting up a sign, and left plenty of road space for road-side parking and car passage. The curvy hill part of Richmond has wide 20m right-of-way between property lines, but the road profile part (travel lanes and sidewalk) are a pretty typical 14.5m. This feels wider partly because the sidewalks are less than the 1.8-2m wide we would shoot for in 2019, there is no buffer space between the sidewalk and the road, and the parking spots along the road are unmarked and not very heavily used. Add this up, and you have no visual “friction” giving drivers cues to slow down. Wide roads tell people to drive fast, it is human nature.

This is how the road was built in the late 1980s:

I like to think if we were building the road today, it would more like this:

But that is just a representative cross section. There is another issue that makes the pedestrian experience even more uncomfortable. If you look at the intersection of Richmond and Miner, where staff were asked to evaluate placing a crosswalk, you see the corners are rounded off to facilitate higher turning speeds:

The technical term for this shape is “Corner Radius”. In this diagram you can see the curb follows a curve with a radius (blue) of about 8m, and the effective turning radius (tracing the track a vehicle would actually use for a right turn) is closer to 15m. By modern standards, this is a crazy wide corner, more suited for a race track than an urban area. Reading up on modern urban streets standards, curb radii smaller than 1m are not uncommon, and radii bigger than 5m (15 feet) fall under the category of “should be avoided”.

The impact of such a wide radius is bigger than just facilitating faster turns, it also creates a variety of sightline problems. See how far back the stop line is on this corner? How far around the corner can a driver practically see? This results in the confusing stop, creep forward, peek, make aggressive move intersection action that opens up opportunity for driver error. This is made worse when there is no clear demarcation of where the parking zone ends near the intersection. Our Street and Parking Bylaw says you can’t park within 6m of the nearest edge of an intersecting sidewalk or crosswalk, but it is less clear where that 6m buffer is when the sidewalk geometry is like this. moving the stop line further forward creates a conflict with pedestrians trying to cross the street at a rational place – where the curbs are closer.

For pedestrians, these big radius corners increase the crossing distances, expanding the time that someone (especially a young child or senior citizen, who travel slower) is exposed to traffic. Crossing Richmond Street at this intersection, the distance between curb cuts is almost 20m, where the sidewalks are only 11m apart a few meters outside of the intersection:

So what do we do? There are lots of useful guides like these great NATCO manuals that show how an intersection like this can be made safer for pedestrians. We can narrow the road at the intersection, paint new crosswalks, and reduce the turning radius through curb bulges:

But my bad painting skills here represent couple of hundred thousand dollars in concrete, road paint, asphalt, curbs, soil, planting and storm drain realignment (never mind a complete re-design of Richmond Street to pull it into the 2000s as I showed in the cross sections above; that would cost millions). And this is one intersection in a City with more than 1,000 intersections, some better designed than others, some more used than others, some with worse safety records than others. I want to change this specific intersection tomorrow, but who is going to come to Council and ask us to raise property taxes by 0.3% to do it? And why do it here and not at the intersection that bugs you in front of your house?

All this to say that some changes are going to be made to Richmond to improve pedestrian safety, and three other intersections (8th Street at 3rd Avenue, 12th Street at Queens, 6th Avenue at 11th Street) that have been prioritized for this year’s Pedestrian Crossing Improvement program, totaling about $200,000 in work. The work is, necessarily, incremental, and because of that it is never enough, and never fast enough.

Be safe out there folks.

Active Transportation

Posted on . by Patrick Johnstone. Leave a comment.

I know I haven’t blogged about this week’s Council meeting yet, I haven’t had time to edit and get the post up. It’s coming, I swear. In the meantime, I want to get this out, because it has been in my outbox for a little while and it has suddenly become time sensitive.

The Provincial Government is asking the public about active transportation. I have been known to criticize the Ministry of Transportation in the past about their approach to “cycling infrastructure”, but I am going to hope that this is the start of a new approach. You have until Monday to answer their questions!

If you are too busy to write your own thing, you can go to HUB and fill in their form letter, but as an elected person, I like to receive input that brings something new – a 1000-person petition is not as powerful as 100 personal letters that each bring different nuance. So I encourage you to take a few minutes and fill in the answers yourself. If you want some inspiration, here are my answers I will submit this weekend:

Question 1: What does active transportation mean to you and how does it fit into your life?
Active transportation means healthier, safer, happier communities where youth are safe to ride a bike to school and the elderly are comfortable walking to the grocery store. It is about replacing fossil fuel dependence with transportation independence. When we build the infrastructure to support active transportation, we give more people the freedom of choice in how they move around their community, reduce their reliance on volatile international oil markets, keep more of their money in the local economy, build resiliency in our communities and connections between neighbors.

Question 2: What are some of the challenges in your every day life that prevent you from moving towards using active transportation modes? What are some of your concerns about active transportation?
As an active transportation user, and a local government decision maker, the biggest challenge I face is addressing the “gaps” in our systems that make active transportation less safe and less comfortable. I am lucky to live in a compact, dense community where most services are a short walk or bike ride away, but so many of my neighbours still feel it is unsafe to make the journey unless surrounded by two tonnes of steel, which in turn reduces the perceived safety for other community members.

Too much of our active transportation infrastructure is developed as baubles attached to the side of new automobile infrastructure. Sidewalks, crosswalks, overpasses, cycling lanes, and transit supports are evaluated in how they support or hinder adequate “Levels of Service” for automobiles, while the high LOS goals (fast, uninterrupted vehicle travel) acts to make active transportation space less safe and less comfortable. An overpass over a busy road is seen as a pedestrian amenity, when it actually serves to provide more space for automobiles to have unrestricted travel. The trade-off is usually a longer more difficult journey for a pedestrian and introduction of a new barrier for people with mobility challenges. We need to see active transportation alternatives as a solution to community livability, not as a hindrance to the flow of traffic.

Even the language of “transportation” vs. “active transportation” reinforces the idea that using your feet and your own body to move around is somehow lesser than – a secondary consideration to – using an automobile. I have to explain to people that I use transit to get to work, I use a bike to run errands, I walk to City Hall, like that is some sort of radical action instead of a rational and normal way for a person to live in on a modern urban city. Let’s switch that default, for the good of our communities, the good of our budgets, and the good of our planet.

Question 3: What is the most important action that government could take to promote active transportation? What is unique in your community or region that needs to be considered?
Of course, funding. Local governments are straining to provide services as our infrastructure ages. We receive 8% of the tax revenue in Canada, yet own more than 50% of the infrastructure. This inequity is sharpest when it comes to transportation infrastructure. Billions flow for highways and bridges that direct automobiles into our communities (with, admittedly, the requisite active transportation baubles attached), but the local improvements to help us move around within our communities are tied to expectations about “Level of Service” for those automobiles. The cycle is vicious.

My community has one of the highest active transportation mode shares in the province. New Westminster is a transit city, it is an easy city to walk in and the revolution in electric assist bicycles means that residents no longer need to be athletes to manage our hills. We have some of the lowest car ownership rates in Canada. This is not an accident, the City has a dense urban fabric that puts most services near where people live, we are concentrating our growth around these transit hubs and working to make our pedestrian spaces safer and fully accessible. Yet we are choked by through-traffic that makes all of our active transportation spaces less safe and comfortable. This load means we need to spend millions of dollars every year in maintaining our asphalt to provide the level of service through-traffic expects, while struggling to find the thousands of dollars to build better cycling, pedestrian, and transit-supporting infrastructure.

We need help making our transportation system work better for our community, but as long as that transportation funding is tied to our ability to get cars moving, to provide high automobile “levels of service”, we are putting out fires with gasoline.

(draft) Budget 2019

Posted on . by Patrick Johnstone. Leave a comment.

I guess we knew this was going to be a tight budget year for New Westminster, as it is for most Cities in the lower mainland. The shift in MSP / employer health tax has impacted many municipalities hard, which I will talk more about below. Combine that with our aggressive capital plan, regular inflationary increases in costs, and constant demand for new services, and the tax increase is higher than some would have liked this year. That said, I actually would vote to make it a little bit higher, and indicated so to Council. Here is my rationale.

The current proposal is for a 5.28% increase in property taxes. That is about a $117/year increase for the “average” household. For perspective, the “average” household in New West is a $1.2M house that went up in value over the last year by 9%, or about $100,000. Condos went up a little more than houses overall, so the tax increase for condo owners will be proportionally higher than for detached house owners. The City has no control over that, it is just how the market works.

For the purpose of explanation, it is helpful to break that 5.28% into component parts. The numbers below are my back-of-the envelope estimates drawn from the kinda complex budget documents (you can see a staff report here), and of course the budget has not been passed yet, so the numbers may change. All that to say nothing below represents official numbers or communications, but this is close enough to an accurate breakdown to foster conversation:

1.8% is directly attributable to the shift in the MSP and employer health tax. This could be viewed as downloading: increased local government costs that will be funding something that should be paid from provincial and federal coffers. However, I generally reserve that for when we shift the burden for a service to local governments, not just the cost – an oft-mentioned (by me!) example is underfunding the provincially-funded ambulance service so that our locally-funded Fire and Rescue staff need to cover the load. regardless of what you call it ,the effect is the same. We and other cities have challenged the province to not apply this to local governments, and we lost that fight. So here we are, and need to budget for it.

If you want to take a more positive look at (spin of?) this tax increase, remember that it is a result of phasing out of the MSP system. That means the $40 or so that this 1.8% costs the “average” household is easily offset by the $1,500 the “average” New West household saves in reduced MSP fees. If that is no help, then at least recognize this is a one-time event, and that there will actually be a slight reduction in City costs next year as the final MSP phase-out occurs. That means we will be starting the 2020 budget year ahead of the game by about $300,000.

4.23% is direct growth and inflationary pressure – increased wage and supply costs related to just doing what we do every day. This goes up both because of because of inflation, and because the population City is growing at a rate of about 1.6% per year, so we need to do about 1.6% more stuff. Add to this inflation a little above the 2.0% projected CPI increase (don’t get me on a rant about how the CPI “basket of goods” does not fairly reflect the inflation of running a municipal government) and the projected 2.5 % wage growth across the region. Much of this increase is locked up in contracts with our staff, which have annual increases built into them. Of course budget time usually results in some on-line trolling of City workers. For the record, I no not think our staff is underworked or overpaid. Wages in New West are a little below the regional average for municipal governments for people in comparative roles, and our ratio of exempt staff to union staff is about 13%, which is slightly below the average of comparable sized municipalities (a fact that is directly counter to the rhetoric used by some during the recent election).

-2.46% That’s right, this is a negative. The growth part of above means that there are more properties / people to pay taxes and more services bought from the City. The taxes from new construction and increased other revenues allow us to actually reduce the overall tax rate by about 2.5%.

1.2% is related to new spending. This is all new staff positions and operational and capital costs related to things we do now that we didn’t do in the past. This is “discretionary spending”, the money we get to haggle over at this point in the budget cycle. And haggle we did.

The reality for us on Council is that people rarely ask us to do less. Every week, people come to Council asking the City to do something more, be it paint more crosswalks or plant more trees or give more to a local group to help run a festival or provide homelessness outreach. Nine times out of ten, we want to do it, and often I see the strained look in staff’s eyes as they are the first to recognize that we don’t have the capacity in our budgets or room in staff work plans to do this, and they are going to have to come back to Council with hat in hand, asking for the resources to fund what Council has already said we want them to do, or to ask us which of the existing programs or services we should cut. It is only the week of budget that everyone asks us to spend less, but aside from “finding efficiencies”, I never hear specific programs that people want us to cut.

The “nice to haves” in the budget reporting this year added up to more than $2 Million, and would have put us well over a 7% tax increase. This means we did not fund some of the things I would have loved see happen this year in the City.

To give you an idea of what kind of new spending we did approve, here are a few line items from the report:
• $122,000 (equal to 0.15% tax increase) to hire two new staff to ramp up the tree maintenance and planting program as we move forward with Urban Forest Management Program;
• $80,000 (0.10%) to bring in some expertise to guide us through our Truth and Reconciliation process;
• $225,000 (0.28%) to run the QtoQ ferry service year-round;
• $54,000 (0.07%)for a part-time Facilities Project Manager to help us make budget and timing on a couple of our bigger capital projects;
• $100,000 (0.13%) for a full time program coordinator to carry the Intelligent City program forward for one more year;
• $65,000 (0.08%) for a Special Events program coordinator to help for community partners to run events like Fridays on Front.

0.5% The final piece of the budget increase this year is the Capital Levy. We introduced this special line item last year as a buffer for our increasingly extensive capital plan. The big item is, of course, the replacement of the Canada Games Pool and the Centennial Community Centre, which will blow a $100 Million hole in our budget. This is a big enough story, and this is already a long enough blog, that I am going to hold off commenting more on the Capital Plan until a follow-up blog. Short version: I think we should be putting more into this Capital Levy and keep it at 1% this year, but the majority of Council did not agree.

What we have now is a proposed budget framework, subject to some last-minute number crunching and adjustments by finance staff. There will be a budget bylaw (and new 5-year financial plan) prepared, which will come to Council for deliberation, though the real debate happened in workshop last week (see the video here). Of course, we always invite public comment and delegations to come speak to the budget and let us know how much they appreciate the hard work staff and Council do to manage the City’s finances responsibly. Alternate opinions are also welcomed.

Bullies

Posted on . by Patrick Johnstone. 4 Comments.

I’m on vacation, I’ll be back next week. However, this letter to the editor of the Burnaby Now entered my social media feed, and much to MsNWimby’s lament, I had to take a few minutes to pen a retort. I thought of sending it to the Burnaby Now, but I thought it would look weird for a New West City Councillor to get something like this published in a Burnaby newspaper, so instead I’ll just post it here.

Letter: Why can’t bullied kids just get with the program?

Editor: Last weeks’s Burnaby NOW had a letter from Diane Gillis raising important questions about why pedestrians don’t work harder to protect themselves from getting hit by cars. I think it provides a great platform to offer similar safety tips for youth suffering from another well-identified danger in today’s society: schoolyard bullying.

It does not matter who is right and who is wrong in schoolyard bullying – it is the bullied child who is at greatest risk of injury or psychological trauma.

Sadly, there are too many children who do not understand or know of what they can do to avoid bullying. I chair the communications subcommittee of my local Concerned Parents of Athletic and Cool Children chapter, and we coordinate anti-bullying messaging for our children, and those who do not qualify. At the November CPACC meeting, we discussed ways to reduce bullying.

All children should consider these anti-bullying safety tips.

  • Wear more attractive / fashionable clothing so the cool kids will not notice your lack of flair. If wearing professional-sports-team-branded clothing, be especially aware of the sports franchises preferred by the local cool kids.
  • Don’t go to places where bullies hang out, like malls, schools, or outside.
    If you have to go to those places, look out for bullies.
  • If you see a bully, run away really fast.
  • Don’t make eye contact with bullies.
  • Don’t use your phone and/or headphones, or carry anything of value while walking where bullies might spot you.
  • If a bully approaches you, hand them your lunch money and beg for mercy.
  • Wear a helmet.

Something I think is telling. Yesterday afternoon at about 3:30 p.m. – just after school gets out and when most kids were playing sports or hitting the Mall – as I was driving past a schoolyard in Burnaby, I saw a skinny, nerdy kid getting taunted by a group of pretty cool-looking kids.

When I saw his Minnesota Wild t-shirt, his last-year’s Walmart Nikes, wire-rim glasses and his clarinet case, it was all I could do to stop from yelling “Hey Nerd!” and slapping the little loser myself.

There is a lot more to the concerns of many of us regarding keeping all kids safe from bullying. And as long as we can continue to blame the victim, none of us will ever have to recognize our own personal responsibility to keep our community safe for all, or even acknowledge what the real dangers are.

Utilities 2018 (Part 2)

Posted on . by Patrick Johnstone. Leave a comment.

In my previous utilities post, I talked about revenues and expenses in our utilities, and readers of our financial spreadsheets would see that we make more money in revenues than we spend operating the utility – we make a “profit” every year. So what happens to that money? And if we make a profit already, why are rates going up?

I feel I have to caveat a bunch of this stuff, probably should have in the last post as well – I’m not a finance professional, or even a decent bookkeeper. I need to simplify what are sometimes pretty complex finance rules and practices to understand them myself, never mind try to explain them. So everything here needs to be read in that context – I may get some of this a little wrong in a way that causes a Chartered Accountant to chuckle, but hey, at least it is them laughing at me for a change instead of the other way around. This is also why I am tempted to put scare quotes around a bunch of terms like “profits”, because I realize I am using the terms colloquially, not strictly. So maybe assume any word below that is not used in a way that strictly fits the definition as having scare quotes.

The short answer to that question is that all of the profit from utilities is re-invested into the utilities through their respective capital budget. Looking at the 2019 Water budget that looks like this:

One would be tempted to interpret this as:
Our Revenues are projected to be:  $13.4 Million
Our Expenses are projected to be:  $  8.4 Million
So the “profit” is                                  $  5.0 Million.

However, this is a simplification of our actual 2019 budget, because it only considers our operating budget, not the way we support our reserves and capital costs. This is why the numbers you see here will be a little different than the ones in my previous post – I am going to try to meld together our operational and capital budgets in a way that makes sense. A better way to look at these spreadsheets for people not that into spreadsheets is a flow diagram:

On the left are all of our “inputs”, and the right are out “outputs”, and all of the vertical bars are to scale (numbers are thousands of dollars). You can see most of the income of the utility is in Rates (about $13M of $14M). Of that money, about $6.5M goes to Metro Vancouver to pay for water, about $2M goes to salaries and other operational costs, and about $5.4M ultimately contributes to Capital costs. Most of that Capital spending is on paying for infrastructure repairs and replacements (actual pipes in the ground, valves, pumps, and such), though some goes to equipment (trucks, wrenches, computers) used to keep the infrastructure operating.

Keen eyes will note that the Reserves bar has a gap at the bottom left – we are budgeting to take about $280K more out of reserves in 2019 than we put in. Not shown on this diagram is the ~$4.3 Million we have stored in our reserves at the end of 2018, and how that will be reduced to ~$4.0 Million by the end of 2019. I will talk more about that later.

I created a similar flow diagram for the 2019 Sewers budget:Immediately, you will notice we are spending much more money (proportionally) on infrastructure here than in the water utility. This is largely due to the ongoing sewer separation work that New Westminster has to deal with. You can see it is almost all spent on actual infrastructure ($13 Million!). You will note also that the gap between what we are putting into reserves and taking out is large – about $2.7 Million in 2019. We are also expected to receive another $865K in grants to help pay close that gap. Again, more on this later.

The Solid Waste budget looks a little different:Two things stand out here: the capital budget is much smaller (it is all equipment), and both salaries and Charges is much bigger. This has to do with the nature of the work, collecting garbage requires people, and I suspect the largest “charges” expense is fuel to keep the garbage trucks rolling.

So that is where we are in 2019, but what will change as we increase rates every year?

This graph shows how the main Water Utility cost drivers are going to change over the 5-year plan. The rates we pay to Metro for water going up steadily, capital spending increasing at a lower rate, and the trend for our reserves is moving from a small annual loss (remember the gap in the flow chart above) to an increase, then trending back to even. You can see by the green bars that our reserves are currently just over $4 Million, with the goal of them settling in at just under $10 million.

The same graph for the Sewer Utility shows Metro rates steadily increasing, capital spending going down, and our reserve contributions again going from negative to a more sustainable level.

Finally, our Solid Waste accounts show Metro rates only increasing moderately, and our capital spending going down for a few years while the trend for reserves will hopefully go from a deficit position to a small positive reserve.

In summary, the current plan will get our utility reserves back into a place where they can support the long-term financial sustainability of the utilities, and constrain our local capital spending a bit to buffer this. The part we have less control over is the Metro Rates, and this topic is something that is making waves across the region. I’ll write more about this in a future blog post.